Trend Research Offloads 400,000+ ETH as Liquidation Threat Looms

Trend Research just dumped over 400,000 ETH in seven days. The Ethereum-focused fund is scrambling to avoid liquidation as prices crashed and leveraged bets went sideways.

The firm is linked to Liquid Capital founder Jack Yi. It's based in Hong Kong. A week ago, it held 651,170 ETH. Now? Roughly 247,080, according to Arkham.

That's a massive retreat. This is the same firm that made its name aggressively buying Ether after October's crypto crash.

Blockchain data from Arkham shows approximately 411,075 ETH moved to Binance this month. That screams selling. Ethereum dropped nearly 30% to lows near $1,748 before bouncing to about $1,967.

Why the fire sale? Liquidation risk.

Analysis from Lookonchain reveals Trend Research faces multiple liquidation bands on Aave. They're between $1,698 and $1,562. Prices fall to those levels? Its collateralized positions get forcibly unwound.

The firm's been using leveraged strategies on the DeFi lending protocol. It funded massive ETH purchases with stablecoin loans. That works great in bull markets. Not so much now.

Jack Yi admitted the mistake publicly on X. He "called the market bottom too early but remain long-term bullish on crypto." He says the firm's managing risk. Waiting for broader market recovery. Translation: they're trying to survive without getting completely wiped out.

Trend Research became a major player after October 2025's $19 billion crypto liquidation event. It started accumulating ETH at scale then. At its peak? The firm would've ranked as the third-largest Ether holder. That's an outsized bet on Ethereum's recovery.

The deleveraging shows how vulnerable leveraged DeFi strategies are during sharp downturns. Trend Research is fighting to avoid forced liquidations. Meanwhile, other corporate holders like Bitmine are sitting on billions in unrealized ETH profits. Divergent fortunes among institutional players navigating these volatile markets.

The firm's struggle isn't unique. Leveraged positions across DeFi protocols face mounting pressure from persistent price weakness. Can Trend Research hold its remaining position without more selling? That depends on Ethereum's price trajectory in coming weeks. And whether it can manage collateral ratios on Aave.